Collapse of the Canadian Dollar ?

For a while now our Canadian Dollar has been to parity with the U.S. Dollar.

If, for instance, the U.S. economy, The Markets, China, and what have you causes the USD to Crash Big Time, would that mean that my Canadian Loonie
would stay to parity and Crash also within a few hours, days, months, or it would not be too much affected.

Seeing as the Loon only has a rate just about parity because the value of the USD has fallen so much in the last year or so, I don't see how they're
really all that linked. Two different currencies, two different central banks and two different countries.

There are many factors that affect the C$ v. the USD. Interest rate spreads, commodity prices and the shape of our public finances, to name a few.

IMO we certainly have the last two going for us, but the first one has tempered any further advances over the past few months - the weakness in the
Ontario manufacturing sector has put downward pressure on our interest rates, thus making the C$ less attractive. That said, some Cdn houses are
predicting we'll go to $1.05USD over the next few months.

While I am in no way an authority in this subject, I would like to point out that during the initial slump of the US dollar the Loonie had almost
surpassed the 1.15$ mark. I remember reading at least two articles in which it was stated that this was hurting Canadian corporations greatly and
efforts would be organized to suppress the loonie ascension. Shortly thereafter and until now the Loonie is always +- .03$ compared to the USD.

Actually Canada has been lowering there prim lending rate with each dip the USD takes , so that the Canadian dollar stays close to par with the USD .
As mentioned earlier Canada's natural resources and low debt make it a much more likable investment then the USD right now .

Well in all actuality, a collapse of the US dollar would mean a tragic stumble for the Canadian loony. Our main export is to the United States. We
export 81.6% to the US, and import 54.0%. If we can't export as much to the US many of us would lose jobs because companies must shut down, we would
lose tourists from the US, and our food prices would inflate dramatically. However, I think the majority of our export to the US is oil. I am sure
that we can find another partner such as China or India to trade with.

Canada needs to disengage itself from the US economy as much is possible as soon as possible...

I mean its nice to have the old dog around, but when he's got cataracts in both eyes, is deaf, has arthritis in the spine and diabetes, you have to
put him down eventually, right ?

I'm sure China would love to get its hands on some (more ?) Canadian resources....They cant get enough....Australian iron ore producers have just
secured 95% increases in or prices for the next 12 mths, that's how insatiable the Chinese are...

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